Monthly rent by sector

Monthly rent by sector in London and England (2018/19)

Housing affordability in London has diminished as rents in the private rented sector have increased by almost 30% since 2008, despite mostly stagnant wages. This means that, in every London borough, the average rent for a one-bedroom house or flat on the private market, is at least 30% of median pre-tax pay in London. 

Affordable and social rents are part of the solution, with the typical rent on a one-bedroom socially let property being £430 a month compared to the typical private rent of £1,280. However, even these types of accommodation are more expensive in London than in the rest of England - £100 more a month so for social rent and £220 more for affordable rent - and have been increasing faster than both inflation and earnings. 

The three types of rented accomodation considered here are Private Rented, Affordable Rented and Social Rented. Private rents are paid by tenants in accomodation let on the open market by for-profit landlords. Social rented accomodation is provided by local authorities and housing associations at significantly lower rates for people who meet certain criteria. Affordable rents are a middle way between social and private rents. They are offered by housing associations to people on low incomes at rates of at most 80% of the local market rate.

Social and private market real terms rents in London and England, indexed to 2008 (2008-2019)